7. Production indices

Table 5 shows four different production
indices. To produce these, income and expenditure accounts (similar
to
TIFF) are
calculated based on constant prices. The percentage annual changes
in these is calculated, which are then converted into indices.

The Output Index looks at how the volume of output changes
over time. It doesn't take into account capital formation, and is
not affected by whether commodities have received coupled
support.

The Input Index looks at most items of input, hence how the
volume of input changes over time. It doesn't however take into
account spend on contract work, interest or taxes on
production.

Total Factor Productivity Index calculates the ratio of
outputs to inputs, in line with that published at
UK-level by
DEFRA.

The Gross Value Added Index is a volume-based indicator of
the economic size of the industry, used in
GDP
calculations. As with the other indicators, it is not, strictly
speaking, affected by the value of commodities, other than in
terms of the weight given to each element within the calculation.
This index is therefore different from the Gross Value Added
figure included in
Table 1.

The three indicators, excluding Input, show fluctuating growth
compared to the base year 2000. Initial growth until 2006 has
stuttered, with dips in 2010 and 2012, but with more recent years
showing some positive signs.